June 18, 2020 / 3:23 AM / 18 days ago

Morning News Call - India, June 18

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    FACTORS TO WATCH
    11:00 am: Prime Minister Narendra Modi to address the launch of ‘Auction of
Coal Mines for Commercial Mining’ in New Delhi.
    11:00 am: ASSOCHAM’s webinar on “Impact of COVID on GST and its filing under
lockdown” in New Delhi.​
    
    PROMOTION
    LIVECHAT - REUTERS GLOBAL MARKETS FORUM
    Jeffrey Halley, Senior Market Analyst for Asia Pacific at OANDA in Jakarta,
joins us to discuss the equity market rally, how much of the second wave of
COVID-19 is a worry for the markets, and what to expect from here. To join the
conversation at 9:30 am IST, click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • Oppo cancels live online phone launch in India amid calls to boycott
Chinese goods
    China's Oppo cancelled the live online launch of its flagship smartphone in
India on Wednesday after a border clash between the two countries that has
renewed calls from local Indian trader groups to shun Chinese products.

    • Asian pharma stocks jump on hopes for steroid in COVID-19 treatment
    Shares in Asian generic drug firms that make the anti-inflammatory steroid
dexamethasone jumped on Wednesday after a trial showed it helped reduce death in
severe COVID-19 cases.
    • India, China want peace but blame each other after deadly border clash
    India and China said they wanted peace but blamed each other on Wednesday
after soldiers of the two sides savagely fought each other with nail-studded
clubs and stones on their Himalayan border, killing at least 20 Indian troops.

    • Indian military stores orders for Pernod, Diageo dry up-sources
    Pernod Ricard and Diageo, two of the world's biggest spirit makers, have
stopped receiving orders for their imported brands from India's defence canteen
stores where they were sold at concessional prices, industry sources told
Reuters.
    • China-backed AIIB approves $750 million loan for India's COVID-19 response
    Beijing-backed Asian Infrastructure Investment Bank (AIIB) has approved a
loan of $750 million to help India battle the impact of the coronavirus pandemic
on vulnerable households, the bank said on Wednesday.

        
    GLOBAL TOP NEWS
    • Trump asked China to help him win in 2020, offered 'favors to dictators,'
Bolton says
    In a withering behind-the-scenes portrayal, President Donald Trump's former
national security adviser John Bolton accused him of sweeping misdeeds that
included explicitly seeking Chinese President Xi Jinping's help to win
re-election.
    • Republican U.S. Senator Scott unveils police reforms, Democrats push for
broader changes
    U.S. Senate Republicans unveiled a law enforcement reform bill on Wednesday
as a rival to more sweeping Democratic legislation, as Congress sought to curb
racial discrimination and police abuses three weeks after the death of George
Floyd.
    • Steroid should be kept for serious coronavirus cases, WHO says
    A cheap steroid that can help save the lives of patients with severe
COVID-19 should be reserved for serious cases in which it has been shown to
provide benefits, the World Health Organization said on Wednesday.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were 0.7% lower at 9,780.50.
    • The Indian rupee is expected to weaken against the dollar, tracking a
broad decline in Asian shares on concerns that fresh outbreaks of the
coronavirus could delay an economic recovery.
    • India’s government bond yields are likely to edge lower in early session,
as India and China agreed to de-escalate the situation at the border after a
clash between the troops of the Asian neighbours. However, concerns over excess
supply in the debt market will cap a large fall in yields, traders said. The
yield on the benchmark 5.79% bond maturing in 2030 is likely to trade in a range
of 5.80%-5.85% today.
    
    
    GLOBAL MARKETS
    • The S&P 500 closed lower on Wednesday as news of spiking pandemic data and
the prospect of a new round of economic lockdowns dampened investor optimism
over signs of economic recovery.
    • Asian stocks and Wall Street futures fell as spiking coronavirus cases in
some U.S. states and China crushed hopes of a quick global economic comeback
from the pandemic.
    • The dollar and the yen edged higher on Thursday as growing concerns about
a rise in coronavirus cases underpinned safe-haven demand for both currencies.

    • The U.S. Treasury saw strong demand for its second sale of 20-year bonds
on Wednesday, as yields fell broadly in choppy trading on concerns about new
outbreaks of the coronavirus.
    •  Oil prices fell around 2% as a spike in new coronavirus cases in China
and the United States renewed fears that people would stay home, stalling a
recovery in fuel demand even as lockdowns ease.
    • Gold was steady as investors remained concerned about a possible slow down
in global economic recovery due to a rise in new coronavirus cases in the United
States and China, but a strengthening U.S. dollar limited the metal's appeal.

    
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         75.98/76.01  June 15          494.90       59.01 crores
                                                 crores       
 10-yr bond yield  5.79 pct     Month-to-date    23,335       (1,989) crores
                                                 crores       
                                Year-to-date     (17,010)     (1,07,403) crores
                                                 crores       
 
    (FII investment numbers are in Indian rupees. Source: National Securities
Depository Limited)

    
    For additional data:
    India govt bond market volumes                 
    Stock market reports                
    Non-deliverable forwards data              
    Corporate debt stories               [IN CORPD]
    Local market closing/intraday levels [IN SNAPSHOT]
    Monthly inflows                      [INFLOWS RTRS TABLE IN]
    
    ($1= 76.24 Indian rupees)
 

 (Compiled by Nachiket Tekawade in Bengaluru)
  
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